Sugar shares rally up to 9% on hopes of strong operational performance

With favourable mix of ethanol towards B-heavy/juice (feedstock) coupled with higher sugar realisations; operating margins are expected at 12.7%-13.7% in FY22-FY23 (slightly higher than FY21 levels).

Shares of sugar companies rallied up to 9 per cent on the BSE in Tuesday’s intra-day trade in an otherwise subdued market. The sweet rally is backed by expectation of strong operational performance, favourable mix of ethanol towards B-heavy/juice (feedstock), and higher sugar realizations.

Shares of Mawana Sugars, Dhampur Sugar Mills, Triveni Engineering & Industries, Balrampur Chini Mills, Dalmia Bharat Sugar and Industries and Dwarikesh Sugar Industries were up between 3 per cent and 9 per cent on the BSE. Most of the sugar stocks traded close to their respective 52-week highs. In comparison, the S&P BSE Sensex was